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From:TheBahamasWeekly.com Bahamas Information Services Updates  Opening Remarks By: Senator The Hon. Keith R. Bell Minister Of State The Ministry Of National Security On The Value Added Tax Bill, 2014 Before The Senate Monday, 1st September, 2014 Introduction I wish at this time to open the debate in the Senate on the Value Added Tax Bill 2014. I trust that Honorable Senators appreciate that this Bill represents a landmark moment in the history of our nation. Following many years of study and discussion, we are finally moving to bring our system of taxation up to the proper and appropriate standards of the 21st century. I will, in these opening remarks, make observations on a number of vitally important matters in respect of the Bill that I hope will serve to promote an enlightened and effective discussion of the Bill. I will, specifically, touch on the following issues: 1. Setting the new VAT and tax reform within the context of the Government’s overarching national development plan; 2. Outlining the concerted efforts to reform and modernize the administration of the major, existing taxes in order to enhance revenue collections performance; 3. Reviewing the many initiatives that the Government has launched to better contain and control public expenditure; 4. Expanding on the key elements of the VAT policy and administrative framework that is featured in the VAT Bill; and 5. Elaborating on the complementary reductions that have been announced for various tariff and excise rates. The Government’s National Development Plan The VAT Bill before us is about the introduction of a new tax on consumption in The Bahamas. However, it is critically important to properly situate this initiative in the broader context of the Government’s overall plan for national development. The plan, appropriately so, is about much more than tax reform and the introduction of a new source of taxation. This plan offers new and innovative solutions for the wide range of economic and social challenges facing the nation. To that end, the Government has charted a course of change with the specific goals and targeted actions that it will implement over the full course of its mandate. The plan is multi-faceted and it is targeted to fighting crime and bolstering national security, strengthening the economy and creating jobs, enhancing health and education and social development generally as well as promoting the further development of our Family Islands. We fully recognize that the challenges that confront us are numerous and complex. The plan of action is commensurate with those challenges and the Government is steadfastly committed to its full implementation for the sake of a better life and future for all Bahamians. The achievement of those objectives clearly rests on stronger economic growth going forward. To that end, the plan encompasses a variety of measures including strengthening our key tourism industry; promoting additional foreign direct investment across the country, and particularly in Grand Bahama and the Family Islands; exploring avenues for further diversifying our economy, especially in the agricultural area through science and technology to improve our competitiveness in food production. We are also committed to further diversifying our financial services sector; the further development and expansion of our yachting and shipping registries; expanding our investments in education; and strengthening national training through the National Training Agency to establish a competency based training and job placement system that is flexible and responsive to the requirements of the workplace.... Full VAT OPENING REMARKS - Minister Bell attached
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